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THE HISTORY OF THE FREUDENBERG GROUP 1849-2019

THE HISTORY OF THE FREUDENBERG GROUP 1849-2019

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Page 1: THE HISTORY OF THE FREUDENBERG GROUP 1849-2019

THE HISTORY OF THE FREUDENBERG GROUP 1849-2019

Page 2: THE HISTORY OF THE FREUDENBERG GROUP 1849-2019

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INNOVATION – SINCE 1849

The Freudenberg Group stands for technology and progress. Innovation is a common thread throughout the company’s history – ranging from chrome tanning and the Simmer-ring, to sophisticated high-tech sealing and vibration control solutions, technical textiles, filters, state-of-the-art cleaning products, chemical specialties and medical products. The Freudenberg Group combines its innovation strength with strong values and its technical know-how with corporate social responsibility. High quality, reliability, partnerships with customers and financial solidity are among the pillars of the company’s 170-year history.

Since Freudenberg’s founding, the company has been suc-cessful through change. The Group now provides customers with solutions and answers to the questions of tomorrow. Freudenberg is at home in some 40 market segments with thousands of applications – often invisible but always es-sential.

Every day, some 50,000 employees work to make sure that Freudenberg’s success story is a story of innovation – work-ing together on international projects in diverse teams. Excellence and commercial foresight have been a part of the company’s DNA since it was founded by Carl Johann Freudenberg in 1849.

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1849-1929

FROM CRAFT TO INDUSTRY

On February 9, 1849, the tannery Heintze & Freudenberg, which has 50 employees in Weinheim, is established by the partners Heinrich Christian Heintze (1800–1862) and Carl Johann Freudenberg (1819–1898). The two entrepreneurs produce fine calf leather. The leather production consists of about 75 production steps, which are individually optimized to produce high quality leather. This quality standard is still part of Freudenberg’s self image.

From the beginning, there is extensive international busi-ness (including exports to the USA, Great Britain and France).

One year after the establishment of the company, Freudenberg develops its first innovation: the company flourishes with the introduction of patent leather produc-tion in 1850. Five years later, patent leather already accounts for more than 80 % of production. In order to meet the high demand, Freudenberg builds a second plant in Weinheim in 1852: a lacquering shop.

At the same time, the first overseas branch is opened in the UK. A global procurement (rawhide import) and sales net-work is established, including business relationships with Italy (1851), Scandinavia (1852), Brazil (1853), Spain (1854), Russia (1855) and India (1867).

From craft to industry

Carl Johann Freudenberg, in about 1860

The ”panel field“ next to the lacquering shop: the panels with patent leather are dried in the sun

Following the death of the partner Leopold Heintze in 1874 Carl Johann Freudenberg becomes sole proprietor. The com-pany is renamed Carl Freudenberg and develops into the largest tannery in Germany, and later in Europe.

In the same year Carl Johann Freudenberg establishes health insurance for his employees, which becomes Betriebskrankenkasse Freudenberg. Ten years later, in 1884, statutory health insurance is introduced in Germany.

In 1887 Carl Johann Freudenberg introduces the next gene-ration. His sons, Friedrich Carl (1848–1942) and Hermann Ernst Freudenberg (1856–1923) become partners. At this time, the company employs more than 500 employees. On the occasion of his sons joining the company, Carl Johann Freudenberg writes his business principles. Modesty, hones-ty, a solid financial foundation and the ability to adapt to the respective changes are Carl Johann Freudenberg’s most important principles for successful entrepreneurship. Today, these Guiding Principles form the basis of Freudenberg’s Busi ness Principles.

With the death of Carl Johann Freudenberg in 1898, Fried-rich Carl and Hermann Ernst Freudenberg take over the busi-ness completely.

1849-1929

The coat of arms of the Carl Freudenberg tannery, 1874

Friedrich Carl Freudenberg, 1895

Hermann Ernst Freudenberg, 1880

1849-1929Heintze & Freudenberg established

First international business relationships

1849

Patent leather developed

International business expanded

1850

Carl Freudenberg becomes sole owner of the company

Company health insurance established

1874

The second generation on the Management Board

First business principles

1887

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The first canteen for employees opens in 1892. Soon there are plant kitchens where the workers can get a warm lunch every day for a small fee in all factories.

In 1894, on the occasion of their golden wedding anniversa-ry, Carl Johann and Sophie Freudenberg set up an assistance fund for employees and their families in financial hardship, with a capital of 100,000 Gold Marks and an annual income of 6,500 Gold Marks.

As the demand for Freudenberg leather continues to rise new production capacity is necessary. As a result, a hair wash facility is built in 1896. In the hair wash facility the hairs from dehairing skins (which are first sorted by color) are cleaned and prepared for felt production. This leads to the creation of the Zwischen Dämmen plant, the site on which Freudenberg’s headquarter now stands.

Between 1900 and 1904, Hermann Ernst Freudenberg de-velops the chrome tanning process, which is already being practiced in the US, using his own experiments. The tanning process is now carried out with chrome liquor or chromi-um salts instead of tanning liquor, which consists of various plants (mostly oak bark). This reduces the duration of the tanning process from several months to a few weeks. The leather is waterproof, easy to maintain and has a uniform surface. Freudenberg is therefore one of the first leather producers in Europe able to produce high quality, chrome-tanned calf leather. With the introduction of chrome tan-ning, Freudenberg becomes the largest leather manufac-turer in Europe.

With the outbreak of the First World War, leather business slumps significantly. Heavy declines in orders caused by the shortage of raw materials and conscription for mili tary service means that the number of employees drops signifi-cantly – by more than 2,500 to about 800. The women take on some of the conscripted men’s work until they return.

Dining room in the Müll plant, 1899

Chrome tannery, 1904

Due to high inflation after the war, it is no longer possible to buy the necessary raw materials abroad. A finance com-pany is therefore founded in Switzerland in 1921. Externa S. A. in Lausanne becomes the first foreign subsidiary of Freudenberg. In the same year, Freudenberg & Co. GmbH is established to manage the family shares. This separates the business operations of the company Carl Freudenberg from family affairs. To facilitate the purchase of raw materials, business relationships are expanded with India.

After the departure of Carl Friedrich (1905) and the death of Hermann Ernst Freudenberg (1923), responsibility for the business is passed on to the next generation. Richard (1892–1975), Hans (1888–1966), Otto (1890–1940) and Walter Freudenberg (1879–1957) take over the manage-ment. Richard Freudenberg assumes a representative role for the company. Freudenberg also establishes business relationships with China.

1849-1929

During World War I, women took the place of their husbands,doing the latters’ work in the tannery, 1916

Leather label for export to China, 1923

From craft to industry

Chrome tanning developed

1904

Freudenberg during World War I

2,500 employees

1914-1918

First foreign company established

Expansion to Asia

1921

First canteen

1892

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GREAT DEPRESSION AND DIVERSIFICATION

The global economic crisis affects the entire leather indus-try in Germany to the brink of viability. The sale price for finished calf leather drops dramatically: it is only a fifth of the purchase price for rawhide.

To secure the jobs of what are now more than 3,500 em-ployees, the management develops its own short-time working model. One half of the workforce continues the pro-duction, while the other stays at home: they change roles every two weeks. Employees and their families thus have a chance to get through the difficult period of the global economic crisis.

The difficult economic situation means that the manage-ment team of Richard, Hans, Otto and Walter Freudenberg introduce diversification to the company with entirely new products. The first step is the production of leather sleeve seals for the growing automotive industry in 1929. The com-pany’s first American company is established in Boston in the same year.

From 1932 a new era at Freudenberg begins with the revo-lutionary Simmerring®: sealing technology. Its name is tak-en from the Freudenberg developer Walther Simmer. The Simmerring®, a radial shaft sealing ring for sealing rotating shafts replaces the felt seals previously used. These had of-ten resulted in overheating seals and damage to engine and axle bearings. The Simmerring® delivers significantly better results from the very start. It consists of a sheet metal hous-ing with an integrated leather sleeve. Using a garter spring improves the radial force and sealing performance.

Great Depression and diversification

First seals produced on a spindle press, 1929

Simmerring® with garter spring, 1932

In 1933, Freudenberg takes over the shoe production and commercial chain of the Jewish-owned company Conrad Tack in Burg close to Magdeburg. Takeover talks between the economically ailing Tack and its long-time leather sup-plier Freudenberg had first been held as early as 1932. How-ever, the effects of the Great Depression meant that they were unsuccessful at that time. After the Nazis seize power, the situation for Tack steadily worsens and the company once again enters into takeover talks with Freudenberg. In 1933, these finally lead to a contractual agreement, marking Freudenberg’s entry into the shoe business.

At the time, the members of the company’s management board are civic-economic proponents of the Weimar Re-public. Their outspoken criticisms of Hitler, made especially by Richard and Walter Freudenberg in 1932 and 1933, show them to have been committed democrats. In the years after the Nazis seize power, however, they increasingly come to terms with the totalitarian system, to the extent that the company continues to benefit from Nazi economic policy up to the final collapse of the regime.

At this time, the parent company Carl Freudenberg employs more than 3,500 employees.

1929-1948

Advertisement by Conrad Tack, 1939

1929-1948First seals produced

1929

Simmerring® developed

1932

Entry into shoe business

Start of Nazi dictatorship

1933

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Between 1933 and 1936, Freudenberg assumes control of the Gustav Hoffmann children’s shoe factory in Kleve, Germany, and its elefanten® brand. Freudenberg further expands its shoe activities between 1937 and 1938 via the “Aryanization” of J. Kern & Co. GmbH in Pirmasens, a manu-facturer of heel counters, and baby shoe manufacturer C. Fisch & Co. in Heidelberg. In 1938, Freudenberg also takes over the equine leather business of the Jewish company Sigmund Hirsch in Weinheim, with which Freudenberg has good relations.

As a further response to the leather shortage Freudenberg develops the synthetic latex artificial leather Viledon as a substitute material for bags and suitcases under the lead-ership of chemist Dr. Carl Ludwig Nottebohm. Production starts in 1938. The backing material for the artificial leather is a nonwoven that Freudenberg began developing in 1936.

The synthetic rubber NBR is also used for nora® shoe soles, which are mass produced from 1938.

The training workshop is established and starts to train apprentices in metalworking, woodworking, electrical, tan-ning and other vocations.

1929-1948

The German leather industry is heavily dependent on im-ports. The National Socialists’ self-sufficiency efforts make it increasingly difficult to import enough rawhide for leather production. In 1934 there is therefore a leather shortage in Germany. Freudenberg responds by establishing the main laboratory. The first development tasks are the utilization of skin and leather waste from the tannery and the search for leather substitutes. Research soon focuses on elastomers for the modification and further development of Buna synthetic rubber. The result is Perbunan, a material that becomes the basis for new Freudenberg products in the following years.

Freudenberg replaces leather with rubber as a sealing ma-terial. In 1936, a sealing ring made of Perbunan/NBR is de-veloped: it has a high temperature and swelling resistance when exposed to engine lubricating oil. The NBR Simmer-ring® is a quantum leap for the sealing technology. The new material opens up better options with regard to the shape of the seal body. It is even possible to make the basic shape in the vulcanization tool, after which the sealing lip is precisely adjusted to the respective application using a special finishing process. In operation, the sealing effect is further enhanced by the internal pressure of the medium to be sealed. The integrated garter spring provides additional downforce. The Simmerring® with the NBR sealing lip there-fore ensures optimal sealing performance of rotating shafts, such as the transmission shaft in the car, for the first time. This innovation makes Freudenberg the leading seal expert.

Experiments in main laboratory, 1934

Simmerring® with NBR sealing lip, 1938

Nonwoven production, 1938

Great Depression and diversification

Main laboratory established

1934

Simmerring® with rubber sealing lip developed

Shoe division expanded

1936

Nonwoven production begins

nora® shoe soles production begins

1938

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At the end of the war, the nonwoven backing material is refined and so in 1948, the production of nonwoven-inter-linings for the textile industry and Vileda cloths made from nonwovens begins. These two new products mark the birth of two completely new areas of business: household pro-ducts and nonwovens. Freudenberg continues to diversify. In 1947 the company employs more than 5,000 employees for the first time.

The development of the Vileda cloth had already begun in the early 1940s, when Freudenberg considered possible uses for nonwovens. Two employees’ observational skills played a crucial role in the development of the Vileda cloth. They noted that cleaning ladies used the remains of nonwovens in the plant for wet mopping. The idea was taken up. As ear-ly as 1947, Dr. Carl Ludwig Nottebohm developed the Vileda window cloth. The name “Vileda” is actually a modification of the German “wie Leder” (“like leather”), as the nonwoven felt like a chamois cloth.

After the currency reform, Freudenberg builds on a distribu-tion system and in 1948 founds the Frema plant in coopera-tion with the textile firm Martini in Augsburg, Germany. The production of Vileda cloths begins there in the same year.

Vileda advertisement, about 1950

1929-1948

The diversification initiated before the war means it is ea-sier to compensate for the difficult raw materials situation than in World War I, as the company is no longer exclusively active in the leather business. Therefore, the number of em-ployees decreases only slightly from 4,350 in 1938 to just under 4,000 in 1945.

During the war, Freudenberg is also a supplier to the arma-ments industry. The main products involved are gaskets for various military applications, in particular for vehicles, as well as shoes and artificial leather products for the Wehr-macht.

Due to the scarcities of the wartime economy, the Nazi authorities look for ways to improve the material properties of shoe components. In May 1940, the Reich Office for Eco-nomic Development therefore establishes a shoe-testing track in the Sachsenhausen concentration camp. This con-tinues to be operated by the SS as a punishment detail until the spring of 1945. Materials from at least 79 companies are tested there, one of which is Freudenberg.

Because of wartime labor shortages, Freudenberg employs forced laborers between 1940 and 1945. During this period, a total of 1,845 forced laborers are used in the company’s works in Weinheim, Schönau and Schopfheim. Contrary to the orders of the Nazi regime, remuneration of forced la-borers at Freudenberg matches the basic wage of German workers.

Manufacture of nora® heels, in about 1940

Newspaper advertisement “The Simmering for every application”, from Motor-Kritik, 1942

Great Depression and diversification

Freudenberg during World War II

1939-1945

Start of production of Vileda cloths

5,000 employees

1948

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1949-1995

INTERNATIONALIZATION ANDEXPANSION OF PRODUCT RANGE

Freudenberg celebrates its 100th anniversary in 1949 and presents its more than 6,200 employees with a unique insti-tution: the “Wohnbauhilfe”, a support program for aspiring home-owners, which is a response to the housing short-age after World War II. As early as 1948, employees were permitted to make bricks in their own time on the factory premises: the company made the materials and machinery available.

The “Wohnbauhilfe” also supports employees to finance home ownership. To date, Freudenberg employees have been able to complete more than 13,000 residential units using the “Wohnbauhilfe”.

Freudenberg was among the beneficiaries of the econom-ic boom of the 1950s and 1960s. The company expands at home and abroad. The first foreign production company is built in the USA in 1950. Interlining for the clothing industry is manufactured in Lowell, Massachusetts. This is followed by subsidiaries and investment in Great Britain, France, the rest of Europe and finally in the Far East. The company opens up another product area: In 1950 the nora® rubber floor covering brand is introduced as a development of nora® shoe soles.

The next diversification steps follow in 1957. First Freudenberg becomes involved in vibration control technol-ogy, which complements its expertise from sealing technol-ogy. The company produces shock absorbers, antivibration mountings and ultra bushings under the name Metalastik. A partnership with the Italian seal manufacturer Corte & Cosso is formed. In the same year the product area of tech-nical nonwovens is established with the first filters.

Internationalization and expansion of product range

Production of vibration control ultra bushings, 1957

Nonwoven production in the United States begins, 1950

1960 marks the beginning of two formative partnerships. Freudenberg turns its attention to the Japanese market and finds partners with whom it taps very successful new mar-kets over the coming decades. Freudenberg forms a close partnership in sealing technology with the Nippon Oil Seal Industry Company (NOK) in Tokyo. In the nonwovens sec-tor Freudenberg establishes a Joint Venture with Japanese partners: the Japan Vilene Company in Tokyo. However, the partnerships are not limited to the markets; they also in-clude intensive technology transfer, from which both sides benefit. At this point Freudenberg has more than 11,000 employees.

In 1962, Hermann Freudenberg (1924–2010) takes on the entire coordination of the company as Speaker of the Man-agement Board from his uncle Richard Freudenberg, who has run the company for almost 40 years.

Freudenberg acquires Klüber Lubrication of Munich in 1966, thus opening up a completely new business area. There is a special background to the fact that the sole owner Theodor Klüber sells his company to Freudenberg: Richard Freuden-berg’s pacifism. This was indicated in a speech Richard Freudenberg made at the Bundestag (the German parlia-ment) on December 5, 1952, where he spoke out against the rearmament of Germany, so that “Germans would not have to fight against Germans”. Theodor Klüber identified with this stance and offered to sell his company to Richard Freudenberg.

In 1967, Freudenberg launches the knobbed floorcovering Norament, later to become a classic product. The first major project is to equip Frankfurt airport.

1949-1995

Conclusion of the contract in 1960 between Freudenberg and NOK (from left to right): Dr. Helmut Fabricius, Richard Freudenberg, Dr. Hans Erich Freudenberg, Shogo Tsuru, Dr. Kurt Brasch

Klüber BARRIERTA high-performance lubricant, in about 1966

Employee assistance program: “Wohnbauhilfe” (employee housing support) established

Entry into vibration control technology and filtration technology

First foreign production company

Entry into nora® floor covering business

1950 1960

First partnerships in Japan

11,000 employees

1966

Klüber Lubrication acquired

1949 1957

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An innovation by Dr. Ludwig Hartmann results in a new pro-duction technology for nonwovens. This new spunbonded nonwoven technology allows Freudenberg to develop non-wovens for new application areas, such as wound dressings in medical technology and harvest nonwovens in agricul-ture. The first plant with the new spunbonded nonwoven technology begins production in Kaiserslautern, Germany, in 1970.

In 1973, Freudenberg joins in the seal factory Rubrasil SA in São Paulo (founded 1958). In 1988, Freudenberg and NOK join to form Freudenberg NOK – Componentes Ltda. In 1973 the number of employees rises to more than 25,000.

In 1977, to further spread business risks and open up new markets, Freudenberg begins to produce electromecha-nical components and printed circuit boards. As a result, Freudenberg and its Japanese partner company NOK devel-op the market for flexible printed circuit boards for electri-cal and electronic equipment and components under the name Simflex from the 1980s. From 1996, the company is run under the name of Freudenberg Mektec Europe. In 2010, Freudenberg passes on its participation in Freudenberg Mektec Europe to long-standing Joint Venture partner NOK. The company continues to operate as Mektec Europe.

In Hong Kong, Freudenberg & Vilene International Ltd. Hong Kong is established in 1977. Freudenberg Trading Hong Kong Ltd. is established for sales.

Spunbonded nonwovens protect the crop against adverse weather conditions, temperature fluctuations and pests, in about 1970

Simflex brand flexible printed circuit boards production, 1984

In 1984 the non-profit Freudenberg Foundation is estab-lished. Members of the Freudenberg family transfer capital deposits and other credits to the Foundation. It is therefore a shareholder (albeit a non-voting shareholder) of the com-pany. In keeping with its statutes, earnings from the Foun-dation are used to promote science and education, and to strengthen peaceful coexistence in society. The Foundation’s activities focus on children and adolescents.

In 1985, the Vileda wet mop is developed: it is one of the most successful Freudenberg household products. For the first time Vileda offers a complete floor cleaning system – consisting of mop and bucket with a wringer system.

In the same year Freudenberg acquires Intece in Dia dema, Brazil from the French company Chargeurs (now Freudenberg Não Tecidos Ltda.) for the production of non-wovens in Brazil.

1949-1995

The wet mop, a classic Vileda product, 1985

Freudenberg Foundation logo

Internationalization and expansion of product range

New production technology for spunbonded nonwovens

Entry into electronics businessExpansion in Brazil

25,000 employees

1984

Freudenberg Foundation established

1985

Household product portfolio expanded

19731970 1977

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Freudenberg Lutravil Far East (later Far Eastern Spun-web) is created in 1987 in Taiwan with Japanese and Chinese partners. It begins production in 1990. In 1989, the Taiwan Vilene Company (later Freudenberg & Vilene Nonwovens (Taiwan) Co. Ltd.) is opened with the Japan Vilene Company and partners in Taiwan. Freudenberg expands its China business.

In 1988 Dr. Reinhart Freudenberg succeeds his brother Her-mann as Speaker of the Management Board, who has led the company for 26 years.

The first micronAir® brand car cabin air filters are introduced in 1989. Today, Freudenberg is the world market leader in car cabin air filters.

The American sealing activities by Freudenberg and its Japa-nese partner NOK are introduced in a Joint Venture: the Freudenberg-NOK General Partnership (FNGP).

In 1990, Freudenberg establishes the “Unterstützungs-kasse”, an assistance fund for employees in need. In this way, the idea to help employees experiencing hardship in a non-bureaucratic way, is continued. The fund provides ad-vice and financial support to employees and their families facing difficult situations such as accidents, sickness, dis-ability, old age and death.

Signing of the contract establishing Lutravil Far East, 1987

First micronAir® brand car cabin air filters, 1992

Freudenberg opens its first production facilities in China in 1995. Seal factories are established together with its Japa-nese partner NOK in Changchun and Wuxi. An interlining production company is established in Suzhou with the Japan Vilene Company.

Freudenberg’s involvement in the BRIC countries (Brazil, Rus-sia, India and China) has a long tradition. The first business relationships in Brazil and Russia date back to the 1850s, followed by India in the 1860s and China in the 1920s. From the mid-1990s, the markets in the BRIC countries are system atically developed.

1949-1995

Production of oil seals in China, in about 1995

Internationalization and expansion of product range

First car cabin filters

FNGP etablished

China business expanded

19891987 1995

First production on Chinese mainland

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1996-TODAY

In a large project under the name FOKUS (“Freudenberg Or-ganisation für kundenorientierte Unternehmens-Struktur” – Freudenberg Customer-Oriented Company Structure Or-ganization) Freudenberg adapts its structures to the broad and international positioning of the company in 1996. The company is divided into independent Business Groups that can operate independently and quickly with the focus on the customer in constantly changing markets. Freudenberg becomes a decentralized company.

The new, more flexible Business Groups focus on their re-spective markets and core competencies. This involves reas-sessing the product range and streamlining the distribution channels.

With Dr. Dr. Peter Bettermann as successor to Dr. Reinhart Freudenberg in 1997, a non-family member becomes Speak-er of the Management Board for the first time.

In 1997, the Simmerring® takes on additional functions. Encoder technology is developed and the seal becomes a product that performs tasks beyond sealing. With integrat-ed sensor technology, the encoder can measure the engine revolutions, making it possible to control anti-lock braking systems (ABS) and engine management systems.

In the same year Freudenberg Politex Nonwovens SpA is established in Novedrate, Italy for the production of poly-ester nonwovens made from recycled PET bottles. In 2004, Freudenberg assumes 100 % control of the Joint Venture with Italian partners.

Restructuring and development of new business areas

Logo of the FOKUS project

Sensor Simmerring with integrated encoder, 1997

The TANNER international youth exchange program is laun-ched in 1999 on the occasion of Freudenberg’s 150th anni-versary. The name TANNER is a reference to the company’s roots in leather production. It also expresses the initiative’s central idea: Travel And Navigate New Exciting Roads. The TANNER program enables children of Freudenberg em-ployees, aged 14–20, to independently visit another country for two to four weeks. During this time, they live with an employee host family. This enables young people to expe-rience foreign countries, cultures and ways of thinking in a family environment, helping them to broaden their horizons.

In 1999, with Evolon® technology, Freudenberg develops an entirely new manufacturing process for nonwovens, setting new standards in the process. Through water jet treatment, it becomes possible for the first time to generate micro-filament spunbonded nonwovens from polymer granules to textile fabrics, in one continuous manufacturing process, that display high strength and excellent textility. These non-wovens can be used for a variety of technical applications, such as material for clothing, home textiles (anti-allergic bedding), wipes or synthetic leather.

Freudenberg Schwab is founded in the same year. This is a Joint Venture with the Schwab Group involving the pro-duction of vibration control components for rail vehicles in Adliswil, Switzerland. This move marks Freudenberg’s entry into vibration control technology for rail vehicles. In 2010, Freudenberg Seals and Vibration Control Technology as-sumes 100 % ownership of the Joint Venture.

In 1999, Freudenberg sells the Tack shoe retailing chain, re-ducing the size of the company’s shoe division. With the sale of Elefanten GmbH (children’s shoes) in 2001, Freudenberg cuts its last ties with shoe production.

1996-TODAY

TANNER youth exchange program

Evolon®, the first microfiber nonwoven from Freudenberg, 1999

1997

First mechatronic sealing components

Politex established

1996

FOKUS 1

1999

Launch of the TANNER youth exchange program

Development of the Evolon® microfiber nonwoven

Entry into vibration control technology for rail vehicles

RESTRUCTURING AND DEVELOP-MENT OF NEW BUSINESS AREAS

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By 2000, the company employs more than 30,000 people worldwide.

Freudenberg Fuel Cell Components Technology is estab-lished in 2001. This new business combines the expertise of various Freudenberg activities and develops components for the promising fuel cell segment: seals, gas diffusion layers, filters and humidifiers.

In the following year, Freudenberg separates from its origi-nal leather business. Business relocations, reductions in pro-duction by large customers and a sharp rise in commodity prices have made the business unprofitable. In the same year the Joint Venture Freudenberg NOK Mechatronics be-tween Freudenberg and NOK is established. This focuses on the further development of mechatronic solutions based on flexible PCBs and printed circuits for the automotive indus-try. In 2014, the company begins trading under the name enmech.

In 2003, in the Indian city of Mohali, a production facility is constructed for seals produced by the Joint Venture Sigma Freudenberg NOK PVT. Ltd, founded in 2000 by Freudenberg Seals and Vibration Control Technology, Sigma and NOK. In the coming years, India develops alongside China into one of Freudenberg’s key growth markets.

In the same year Freudenberg Household Products acquires the US company O’Cedar Brands with the brand O-Cedar®. The company is integrated into Freudenberg Household Products.

Production of oil seals in Mohali, in about 2003

With the 2004 acquisition of Burgmann Dichtungswerke based in Wolfratshausen near Munich, Freudenberg ex-pands its sealing business to become a specialist in mecha-nical seals. Activity in the oil and gas industries increases sub stantially. As a result, together with Japanese partner Eagle Industries, the globally active Eagle-Burgmann Group is created. Freudenberg also buys US release agent specia lists Chem-Trend to complement its chemical speci-alties activities. The acquisition of the American company Jenline Industries in the same year, a manufacturer of sili-cone rubber products, sees Freudenberg enter the medical technology industry.

Freudenberg strengthens its activities in the oil and gas in-dustries, as well as in medical technology, through targeted acquisitions under the buy-and-build strategy. 2006 sees the purchase of the Imperial Rubber and Urethane Corporation in Nisku, Canada to strengthen the oil and gas business. In the same year, Freudenberg acquires Helix Medical, a manufacturer of high-quality precision moldings and tub-ing for medical, pharmaceutical and biotech applications. Freudenberg opens its first production plant in Russia in Nizhny Novgorod. Freudenberg Politex Nonwovens produces polyester nonwovens for the construction industry at the new plant.

In 2007, Freudenberg separates from its floor covering business. Freudenberg Building Systems KG, with its nora® brand, is sold to a consortium of investors and continues production in Weinheim. Today, the company operates un-der the name nora Systems.

Burgmann mechanical seal, 2004

Medical products from Helix

Sealing products for the oil and gas industryO-Cedar® mop head, 2006

Restructuring and development of new business areas 1996-TODAY

2002

Leather production ceases

Further development of the electronics business

2003

Expansion of household products in America

Expansion in India

2004

Burgmann Dichtungswerke acquired

Chem-Trend acquired

Entry into medical technology

2006

Expansion into new strategic business areas

2007

Floor coverings business sold

2000

30,000 employees

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The worst economic crisis since World War II is triggered by a slump in the US financial markets in September 2008. With-in a few weeks, this spreads across the global financial mar-kets, causing massive losses in liquidity. Together with ex-isting instability in the real economy, this has a devastating effect on global industrial production. Not even Freudenberg can escape these developments. Particularly hard hit are the company’s key automotive and mechanical engineering seg-ments. In 2010, thanks to an extensive range of measures, Freudenberg emerges strengthened from the crisis.

Freudenberg Household Products expands in Asia. In 2009, the Freudenberg Gala Household Products Joint Venture is founded in India with Indian partners. This deal sees Freudenberg take over the Gala® brand for the Indian mar-ket.

With the 2009 launch of the Low Emission Sealing Solu-tion Program (LESS), Freudenberg offers numerous innova-tive sealing solutions for the reduction of CO2 emissions in vehicles. These extend from reduced-friction Simmerrings, encoder technology for fuel-saving start-stop systems, inno-vative materials for transmission seals and weight-reduced housing elements, through to pressure-resistant sealing solutions for engine downsizing.

With the acquisition of SurTec in Zwingenberg, Germany, in 2010 Freudenberg Chemical Specialities expands its portfo-lio to include a fourth pillar: surface finishing. In 2013, the business is expanded through the acquisition of the shares of Capol GmbH in Elmshorn, Germany, a manufacturer of glazing and release agents for the confectionery industry.

Opening of the Gala production plant in Adas in 2011

SurTec surface finishing, 2010

The creation of the new Business Groups Freudenberg Oil & Gas, Helix Medical and Freudenberg Schwab on January 1, 2011 is a clear indication of Freudenberg’s plans for strategic growth. As part of its buy-and-build strategy, the compa-ny subsequently introduces new technologies to support these Business Groups. 2012 sees the acquisition of Med-Venture, which adds minimally invasive surgery solutions to the company’s medical devices portfolio, while the ac-quisition of Cambus Medical allows Freudenberg to supply high-precision hypotubes and micro-component devices for technologically advanced catheter systems. The acquisi tion of Vector Technology Group in 2013 makes Freudenberg Oil & Gas one of the leading manufacturers of seals and sealing solutions for the upstream segments of the oil and gas market.

In 2011, Freudenberg is awarded the German Innovation Prize as well as the German Innovation Prize for Climate and Environment for its ground-breaking narrow strip-forming laser welding (SUL) technology as part of the Simmerring® production process. This cutting-edge resource-efficient technology developed by Freudenberg for the production of metal rings eliminates waste almost completely from the production process.

The bioresorbable, i.e. biodegradable, scaffolene® nonwo-vens is a pioneering innovation in wound care. Scaffolene® nonwovens can be enriched with active ingredients such as antibiotics and enzymes. In compliance with clinical requirements for local therapy, the active pharmaceutical ingredients are released in the process of the diffusion and disintegration of fibers.

In 2011 Freudenberg Household Products takes over the operative business of Trade & Investment in Asia Limited (TIA) with locations in China, Hong Kong, Thailand, Indo-nesia, Malaysia and Taiwan as well as the swash® brand.

SUL plant at the Weinheim HQ, 2011

scaffolene® nonwovens for wound care, 2011

Restructuring and development of new business areas 1996-TODAY

Development of a fourth pillar for chemical specialties: surface finishing

Further strategic milestones: ground-breaking innovation to save resources

Pioneering innovation in wound care

Further expansion of household products in Asia

2011201020092008

Sales slump due to crisis Expansion of household products in India

LESS – emissions reduction through innovative sealing technology

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2012 sees the reorganization of Freudenberg’s corporate structures with the aim of making them simpler and more transparent. Freudenberg & Co. Kommanditgesellschaft (limited partnership) remains as the Group’s strategic par-ent company. Under its umbrella, Freudenberg SE is formed as a second operative parent company to take on overall responsibility for managing business operations.

After 15 years leading the company, Dr. Dr. Peter Bettermann is succeeded by Dr. Mohsen Sohi, the first Speaker of the Freudenberg Group’s Management Board who is not a na-tive German and not a member of the Freudenberg family.

The same year sees the creation of the TrelleborgVibra-coustic Joint Venture, which brings together the vibration control technology business of the Freudenberg subsidiary Vibracoustic and the Swedish Trelleborg Group.

The LESS program is extended. The new Levitex® crankshaft seal comes very close to the vision of a frictionless seal. This mechanical seal creates an air cushion and reduces CO2 emissions from vehicles by reducing friction.

Freudenberg Sealing Technologies acquires 50 percent of the shares of the Schneegans Group. This gives the com-pany expertise in multi-component injection molding for creating pioneering plastic products, in particular for the automotive industry.

Levitex® seal

In 2013, the FOKUS 2.0 project marks a strategic reori-entation to future-proof the organization of Business Groups, Corporate Functions and the Freudenberg Regional Corporate Centers. The FOKUS 2.0 organization is aimed at strengthening the Business Groups’ commercial focus on marketand customer requirements as well as their innovative potential while improving efficiency for stan-dardized tasks across the Freudenberg Group. The global Business Groups are still the key operative pillars. In the same year, Freudenberg Filtration Technologies acqui-res Aqua-bio Limited, a British company. The move makes Freuden-berg a supplier of water treatment and wastewater filtration systems for industrial applications, e.g. for trea-ting waste-water in production processes. The membranes used in the process reliably filter contaminants and bacte-ria. Reverse osmosis and disinfection can transform up to 70 percent of wastewater into drinking water. This reduces energy consumption, operating costs and CO2 emissions. In the same year, the Freudenberg Households Products Business Group is renamed Freudenberg Home and Cleaning Solutions. In early 2014, the Freudenberg Group joins the Glo-bal Compact initiative launched by the United Nations, which commits signatories to adopt values-oriented and sustainable business practices. With the acquisition of the family business Tobul Accu- mulator Inc., a leading worldwide developer and manufacturer of hydraulic accumulators, the sealing business is ex- panded and the accumulator business strengthened. The Freudenberg Group employs over 40,000 employees worldwide.

The House of Excellence represents the most important pillars of suc-cess for the Freudenberg Group

Freudenberg Filtration Technologies Viledon Aquabio filter plant, 2014

Restructuring and development of new business areas 1996-TODAY

FOKUS 2.0

First steps into water treatment

UN Global Compact Initiative

Expansion of the sealing business

40,000 employees

2013 2014

Reorganization of corporate structures

TrelleborgVibracoustic Joint Venture established

LESS program expanded

2012

Elastic Drive Shaft Coupling from Vibracoustic, 2011

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With effect from January 1, 2015, the Business Groups Freudenberg Nonwovens and Freudenberg Politex merge to form the joint business group Freudenberg Performance Materials.

Freudenberg repositions its global brand. “Freudenberg is a values-based technology group that best serves its custom-ers and society” is the core of the new positioning. A new brand architecture is created to support this goal. From now on, the company slogan “Innovating Together” is added to the company logo, reinforcing the new brand identity.

As part of the repositioning of the Group with its new global brand, the medical business of the Freudenberg business group Helix Medical is brought together under the new name Freudenberg Medical.

At the end of 2015, Freudenberg hands over its 50 percent stake in the joint venture company enmech to long-time joint venture partner NOK. enmech is integrated into the NOK subsidiary Nippon Mektron, the world leader in flexible printed circuit boards. This marks the end of Freudenberg’s activities in the electronics business.

Freudenberg acquires the majority shareholding in the Japan Vilene Company joint venture. Effective from April 1, 2016, Japan Vilene Company becomes a new Business Group in the “Nonwovens and Filtration” Business Area. The shareholders are Freudenberg (75 percent) and Toray Industries (25 percent).

In 2016, Freudenberg acquires 100 percent of the Trel-leborgVibracoustic joint venture for the manufacture of vibration control technological solutions in the global automotive and commercial vehicle industry. The company is renamed Vibracoustic and managed as an independent Business Group. In return, Freudenberg sells the Schwab Vibration Control business for industrial vibration technol-ogy to Trelleborg AB.

Between 2016 and 2018, strategic acquisitions strengthen Freudenberg Home and Cleaning Solutions’ market positi-on. The acquisition of the Italian company, Gimi, expands the laundry care business. The company also gains market leadership with the acquisition of Playtex®, an American household glove brand and E.D. Oates, a professional clea-ning business market leader in Australia.

In early 2018, Freudenberg starts expanding decades of know-how in developing technologically sophistica-ted components for fuel cells and batteries. Freudenberg strengthens its strategic position in alternative drive tech-nologies by acquiring a stake in the Munich-based fuel cell manufacturer Elcore and a minority holding in the battery manufacturer XALT Energy. Alongside series production of key components such as gas diffusion layers and seals for fuel cell stacks, Freudenberg plans to become a supplier of complete electric drive systems for heavy commercial vehicles, particularly buses, trains, trucks and ships: this includes complete battery systems and highly efficient mobile fuel cell systems – including all the components, modules and subsystems needed for operation.

In early 2019, the Canadian ERP specialist, Syntax, acquires FIT (the Freudenberg IT) Business Group which focuses on SAP applications, to prepare FIT for the future.

Freudenberg Filtration Technologies acquires 75 percent of the shares in Apollo Air-cleaner Co., Ltd. The company is a leading provider of air and water filtration solutions in China. Freudenberg Filtration Technologies then focuses on three areas: Automotive, Industry and “Living.”

Restructuring and development of new business areas 1996-TODAY

2015

Restructuring of the nonwovens business

New brand positioning

The logo of the Freudenberg Group, 2015

Nonwovens production at Freudenberg Performance Materials, 2015

Fuel cell test bench at Freudenberg Sealing Technologies, 2019

Filter production at Freudenberg Apollo Filtration Technologies in China, 2019

2018

Focus on new mobility technologies

2019

Expansion of the filter business

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The first company logo, introduced in 1874, is a tanner’s coat of arms. This coat of arms which dates from the Middle Ages shows the tools of a tanner, with a shaving iron (used to ensure uniform thickness) in the center, a flesh scraper (for removing flesh from the underside of the hide) on the right and a hair scraper (for removing the hair from the hide) on the left. These tools are flanked by two lions symbolizing the company’s claim to leadership.

When Freudenberg starts to manufacture other products in 1929, the medieval coat of arms is no longer appropriate. In the search for a new logo it is decided to combine the initials of the company’s founder Carl Freudenberg with the first letter of Weinheim, where the headquarter of Freudenberg is located. The CFW logo is introduced in 1933.

In 1950 the Freudenberg logo is redesigned.

The words “Carl Freudenberg” are added in 1970.

As Freudenberg becomes increasingly international, the “W” for Weinheim in the logo no longer reflects the nature of the Group. Therefore, the Freudenberg name is incorpora-ted into an integrated logo in 1983. The wave at the bot-tom edge of the logo reflects the sine curve shown on the instruments used for ensuring the quality of Freudenberg technical products.

In 1990 the logo is slightly adapted.

History of the Freudenberg Logo

1990

In 2015, Freudenberg repositions its global umbrella brand. “Freudenberg is a values-based technology group that best serves its customers and society” is the core of the new po-sitioning. This expresses Freudenberg’s aspiration to be a technology leader and to contribute, through top-quality products and solutions, to the success of its customers and to the good of society. The new logo includes the corporate slogan, “FREUDENBERG. INNOVATING TOGETHER”. The capitals represent the strength of Freudenberg as a global player. The sine curve remains a symbol of Freudenberg’s commitment to technical expertise and excellence. Through the new positioning, the curve acquires “wings”. The wings stand for openness and increased dynamism, and symbolize partnership and togetherness. At the same time, the new visual element of the logo can also be seen as a bridge repre-senting increased cooperation with all stakeholders as well as reliability and stability.

HISTORY OF THEFREUDENBERG LOGO

1983

1970

1950

1933

1874

2015

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Editorial information

Freudenberg GroupHöhnerweg 2 – 469469 Weinheim

Published by Freudenberg & Co. KommanditgesellschaftCorporate CommunicationsPhone: +49 6201 80 [email protected] December 2019Article-No. FRE1049EN